TMI Blog2019 (2) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... o, only probable scenario which exists is that the assessee has initially received cash of ₹ 20 lacs from the buyer of the property which was deposited in the assessee’s bank account on 8.7.2010 which has resulted in closure of the sale transaction as evidenced by the sale deed executed on 8.7.2010. Subsequently, for reasons best known to the two parties, the buyer of the property issued a cheque of equivalent amount on 10.8.2010 which was deposited in assessee’s bank account on 13.8.2010 and simultaneously, cash of equivalent amount was withdrawn by the assessee and returned to the buyer of the property. In light of peculiar facts and circumstances of the case, we agree with the assessee’s explanation that the source of cash de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ₹ 20,50,000/- was deposited on 08.07.2010. The AO, on perusal of the bank statement, noted another cheque deposit of ₹ 20,00,000/- on 13.08.2010 and in respect of the same, the explanation of the assessee was that the said payment has been received by cheque from buyer of the property and the amount has been withdrawn and given back vide two cheques on the same date by the assessee to the buyer of the property. 3. In order to verify the assessee s explanation, the AO issued notice u/s 133(6) to the purchaser of the property and in his response, he submitted that ₹ 10,00,000/- was paid in cash to the assessee and ₹ 20,00,000/- was paid through cheque. Noting the discrepancy in terms of explanation submitted by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated at D-111, Bhagat Singh Colony, Bhiwadi was purchased for ₹ 30,00,000/- and ₹ 10,00,000/- was paid in cash and the amount of ₹ 20,00,000/- was paid through bank. The entry of cheque given is also reflecting in the account of the purchaser as well as in the account of assessee. 3. The assessee has accepted the fact that a cheque of ₹ 20,00,000/- was received from the purchaser Shri Gulzari Lal Sharma. If this cheque was not against the consideration of sale, then what was the purpose of this receipt in the account of the assessee. 4. The Two withdrawals of ₹ 9.5 lacs on 13.08.2010 from the bank account have been made in cash. The assessee can not establish that these were handed over to purchaser. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee s contention is that the said amount has been received towards the balance sale consideration towards sale of his house property. The Revenue s contention is that based on information received u/s 133(6) from the purchaser of the said property, he has issued a cheque for ₹ 20 lacs towards the balance sale consideration which was found deposited on 13.8.2010 and therefore, the assessee s contention was not found acceptable. 8. To our mind, the better way of resolving the present controversy by the Revenue would have been to call for personal appearance of the buyer of the property and to allow the assessee s to cross- examine the buyer. The same would have given a greater clarity on the factual position on the sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iving the remaining two-third of the sale consideration on 10.8.2010. It is equally highly improbable that as on the date of execution of the sale deed and handing over the possession of the property, the assessee agrees to receive a post dated cheque and live with the consequences of dishonor of such cheque in absence of any recovery mechanism so agreed with the buyer of the property. Having said that, the fact remains that there is a sale deed duly registered which states clearly that the sale consideration has been received by the assessee on or before the date of execution of the sale deed i.e, 8.7.2010, there is deposit of cash in bank account of the assessee on 8.7.2010, and there is also evidence of issuance of cheque dated 10.8.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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